Joe Hockey's threat to bypass the Senate by ordering spending cuts outside of parliamentary approval has touched off a new Labor scare campaign and sparked concerns within the government over the Treasurer's judgment.

With voters offside and crossbench senators showing no signs of complying with unpopular budget measures, some Liberals complained that the Treasurer's move had ''predictably'' brought the opposite effect, branding his threat to cut other spending ''unwise'' and ''a distraction''.

Treasurer Joe Hockey has angered fellow Libs. Photo: Ken Irwin

They revealed Mr Hockey's move had not been part of the agreed government strategy for the day, which had been to press the opposition exclusively on the carbon tax repeal.

Advertisement

One senior figure asked why Mr Hockey had seen fit to open up another front.

''It was a gift to Labor … they did what you would do in that case and started picking us off, demanding that we say where the cuts will be, we would've done the same, it was an own-goal,'' the frontbencher said.

Another long-time Liberal said the budget was in trouble because it lacked consistency with the ''only unifying thing being how it has unified our enemies''.

The complaints came after Mr Hockey used a series of interviews on Wednesday to toughen the budget rhetoric.

''If the Senate chooses to block savings initiatives then we need to look at other savings initiatives that may not require legislation,'' Mr Hockey had said.

A crossbench source, who wished to remain unidentified, said Mr Hockey's comments were a sign of his ''inability to negotiate with the crossbench''.

On Thursday, the Treasurer, dismissed reports he was facing internal party criticism over his comments as ''just a report of a rumour''.

''You just shouldn’t believe rumours,'' he told the Nine Network.

Mr Hockey said the government was working hard to get what it laid on the table through the parliament.

He agreed some of his budget measures meant Australians would have to make sacrifices.

''I know there are things in this budget that are difficult for everyday Australians,'' Mr Hockey told the Nine Network. ''But also I know if we don't move now it (the budget position) is going to get worse.''

Mr Hockey again blamed Labor for the budget impasse, saying ''now they've gone into opposition they are opposing everything we are doing''.

''When we were in opposition we supported 80 per cent of their savings,'' he said. ''We've just got to press on . . . it's a marathon not a sprint and we are very focused on doing what is right over the medium and long term for the nation.''

Asked about the political influence of the Palmer United Party bloc in the Senate, Mr Hockey said the balance of power party had been ''put in this position'' because Labor and the Greens were opposing ''everything'' the government was seeking to do.

Opposition frontbenchers immediately capitalised on Mr Hockey's threat, issuing press releases on a portfolio by portfolio basis challenging the government to expressly rule out further cuts to services such as health, education, social services and foreign aid.

In question time, Labor pursued Prime Minister Tony Abbott, calling on him to rule out adopting harsh aspects of its recent Commission of Audit report such as an even higher GP co-payment of $15 per visit, the calculation of the family home in the pension assets test, the scrapping altogether of Family Tax Benefit (Part B), and other cuts to hospitals and schools.

Amid the concerns over ill-discipline and mixed messages, a new Liberal senator has set out a radical libertarian program in his maiden speech, calling for the GST rate to rise to 15 per cent, federal health and education departments to be abolished and the ABC to be sold if it fails to address perceived left-wing bias.

James McGrath, a former Liberal Party deputy director, also defended people's right to say ''hurtful and bigoted and stupid and dumb things''.

But the government has some reason for confidence with one of the new senators calling on his colleagues to recognise the seriousness of the budget challenge and pass savings measures.

Liberal Democratic senator David Leyonhjelm turned on his fellow crossbench senators in the Palmer United Party, arguing they needed to wake up.

240 comments

Apparently Mr Hockey has decided that the democratic process doesn’t suit the LNP any more, they know they would lose a double dissolution election so they are not prepared to call one, instead they are just going to bypass the wishes of the majority and act like a dictatorship. If you are going to threaten the population with punishment for not accepting your vicious, unfair wealth distribution programme Mr Hockey, you might at least tell us what measures you plan to take to impose your version of austerity on the electorate. This mob are looking decidedly dangerous with their fanatical borne to rule attitudes and methods. Secrecy, propaganda, population control and an unceasing scare campaigns are now key components of the Westminster system according to the LNP.

Commenter

Dreyfus

Location

Grafton

Date and time

July 17, 2014, 5:01AM

When will the Polls start looking at poli-lies. Abbott is still the leader by a huge margin, but Hockey is gaining ground lately.

Well said. Whether you agree or not with their boat people policies, the withholding of information on immigration procedures and refugee activity should be sounding alarm bells to the public, and that is only one issue of many.

Commenter

LJanes

Date and time

July 17, 2014, 6:08AM

They're a bunch of gutless wonders. They have suddenly realised that they cannot use bullying as a tactic for governing Australia and have used up all of their moves. Where to now for this bunch of incompetents?

Commenter

sickofblueties

Date and time

July 17, 2014, 6:13AM

Joe has taken the Australian people hostage and is threatening reprisals if the democratically elected senate does not allow him to have his way. It must not give in to the immoral blackmail.

If he is to remain Treasurer Joe will have to work harder, give up his sermonising diatribes, offend some of his mates, and abandon the flimsy fig-leaf of neo-liberal rhetoric. I don't think that this bellicose man is up to it.

Commenter

Diana

Date and time

July 17, 2014, 6:13AM

Apparently @Dreyfus and the Labor/Greens have decided that the democratic process doesn’t suit them any more. They refuse to accept the decision that the voters made last September. The voters wanted Labor and the Greens, and their loony policies, out and that the LNP clean up the mess that was left. The sore-losers and loons will do anything to stop that cleanup from taking place.

Commenter

The Other Guy

Location

Geelong

Date and time

July 17, 2014, 6:17AM

"Punishment" is the key word. The LNP' MO has always been, "Do as we expect or we will punish you". They are the rulers, we are the ruled. Nothing changes here.

Commenter

John

Location

East Gippsland

Date and time

July 17, 2014, 6:19AM

Pauline Hanson was spot on with her main policy the CITIZENS INITIATED REFERENDUM to keep the mob honest.

Why do we vote for the same medicine who can cure that nasty disease ?

Commenter

half

Location

Sydney

Date and time

July 17, 2014, 6:20AM

Reminds one of 1975, when the Whitlam government tried to go outside parliament to raise petro-dollars to fund their agenda. Who would have thought that the mob who bleated loudest about the threat to our national interest, and who blocked the supply bills to force Whitlam to an early election, would now decide that Gough was actually a good role model to emulate?

16 Jul
Kiwis living in Australia are making a bold pitch to win a place in New Zealand’s Parliament - and from there to lobby for fairer access to social services and permanent residency rights in Australia.